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Lesson 8 Developing A Trading Plan & Resources: by Adam Khoo

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300 views

Lesson 8 Developing A Trading Plan & Resources: by Adam Khoo

Uploaded by

sesilya 14
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Lesson 8

Developing a Trading Plan


& Resources

By Adam Khoo

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
Lesson 8
Developing a Trading Plan
& Resources
Trading Routine

By Adam Khoo

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019
Piranhaprofits.com: Bounce Strategy
Market Bullish or Bearish?
S&P 500 > 20EMA, 20EMA > 50MA: Long trades Bias
S&P 500 < 20EMA< 50MA : Short Trades Bias

Screen for 18 Bounce Long, 50 Bounce Long, Screen for 18 Bounce short, 50 Bounce short,
100 Bounce Long 100 Bounce short

Entry & Exit Rules for Bounce Long Entry Rules for Bounce Short

• 2 candle or single candle reversal pattern with • 2 candle or single candle reversal pattern with
confirmation candle confirmation candle
• Macd (50, 100, 9) bullish or not crossed bearish within • Macd (50, 100, 9) bearish or not crossed bullishwithin
5 candles 5 candles
• Stochastics (5,3,3) below 30 • Stochastics (5,3,3) above 70
• Note: for 18EMA long, MACD (50, 100, 9) and MACD • Note: for 18EMA short, MACD (50, 100, 9) and MACD
(18, 50, 9) must be bullish (18, 50, 9) must be bearish
• High Momentum stocks • Low Momentum stocks
• Sector and/or industry bullish/ uptrend • Sector and/or industry bullish/ downtrend
• Relative strength indicator above red line (or RS • Relative strength indicator below red line (or RS
Ranking above 80 on IBD). Avg Volume > 150,000 Ranking below 50 on IBD). Avg Volume > 150,000
• High Probability Trades when 2/3 Confluence Points • High Probability Trades when 2/3 Confluence Points
• EMA support tested recently • EMA resistance tested recently
• Fibonacci 50% of 61.8% Level • Fibonacci 50% of 61.8% Level
• Horizontal support/resistance • Horizontal support/resistance
Piranhaprofits.com: Bounce Strategy

• Check that company is not announcing earnings


Valid Candle Reversal patterns for Long over the next 7 days
• Avoid trading biotech or pharmaceutical stocks
(unless using options)
Portfolio Management
• Avoid taking more than 2 trades a day
• Total Risk on ALL positions no more than 10% of
your portfolio
•
Exit Rules
• Take Profit 1.5R to 2R above Entry
• Stop Loss 1R below Entry
• Shift SL to Entry once price moves 1R in your
favour
Valid Candle Reversal patterns for short • Exit before earnings announcement (unless
using options to trade)
• Alternative Exit based on price action
• For long, shift SL to below subsequent swing
lows
• For Short, shift SL to above subsequent swing
highs

Position Sizing
Maintain a consistent risk per trade of 1%-3%

Copyright © 2020 Adam Khoo


Learning technologies Group Pte Ltd
Lesson 8
Developing a Trading Plan
& Resources
Trading Journal

By Adam Khoo

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019
Trading Journal
Lesson 8
Developing a Trading Plan
& Resources
Choosing a Broker

By Adam Khoo

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019
Choosing a Stock Broker
These are some critical considerations in choosing a stock broker.
1.Commission rates & additional charges
• This is the biggest cost of your trading business
• Some brokers charge a fixed rate of $8-$10 and others charge a fixed $ per number
of shares
• Total commissions should not exceed 5% of your capital
• Example: if you do 240 trades a year, total commissions would be 240 x 2 x $1 =
$480. If you capital is $20,000, this would represent 2.4% of your capital
• Are there additional charges for data feed, custodian fees, inactivity charge etc…?
Choosing a Stock Broker
2.Financial strength
• Check the financial rating of the broker to ensure it is financially
stable.
• Minimum deposits range from $500- $10,000
3.Margin rates
• If you are using margin, check the interest rates on margin. They can
range from 1.5%-9% per annum
4.Trading Platform
• Does the broker have a user-friendly charting software with trading
features like stop loss orders, market orders, trailing stop loss orders
etc…
Choosing a Stock Broker
5.Range of Products and Markets
• Does the broker offer a wide range of products over various markets?
• How many markets do you have access to trade in?
• What are the products offered? Stocks? ETFs? CFDs? Forex? Futures?
Bonds?
6.Customer Service
• Before you open an account, call the company's help desk with a
question to test how long it takes to get a response. Is there an online
instant chat service?
www.interactivebrokers.com
www.thinkorswim.com
Lesson 8
Developing a Trading Plan
& Resources

By Adam Khoo

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019

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